why collateral is required for Aave Flash loans?


I am trying to understand the process of lending and the significance of collateral in offering loans. Can someone please walk me through the steps involved in lending and explain why collateral is required for loans?

I would appreciate any insights or resources that can help me gain a better understanding of this topic.

Answers 1

Supplying collateral = lending = offering loans

All different words describing the same thing. You need to supply collateral to borrow. And that's required so you don't simply borrow 1 million BTC and run away never to be seen again.